The goal of the proposed research is to investigate how family income inequality has been affected by age-related deomographic changes in consumer units over the postwar period. The primary task and contribution will be to develop and test a model that links trends in population age structure, family structure, labor supply, and the distribution of income. Focusing on families and unrelated individuals, the project will accomplish the follwoing objectives: 1) gauging how aggregate unit income inequality within and between demographic groups has changed over time in response to changes in family structure and in the age of heads; 2) determining the impact on economic well-being of changes in family size and child dependency resulting from the baby boom and baby bust; 3) integrating models of income determination and family formation to further theoretical understanding both of the changes in the characteristics of families, and of the contribution of such changes to family income inequality; and 4) testing the sensitivity of the findings to alternative measures, assumptions, procedures and data. Published tabulations from the 1944-1978 Current Population Surveys are u ed in the calculation, standardization, and time series analysis of inequality measures. Micro data from the 1968 and 1978 Surveys are used with multivariate procedures to study decade trends. The Panel Study of Income Dynamics is employed in the estimation of a dynamic model based on a variance of components schema.